Over $1 billion inflows into Pnut in a day; Should you follow suit? 
Cryptocurrency Nov 13, 2024 Share
Meme cryptocurrencies are witnessing increasing investor interest, and the newly created Peanut the Squirrel (PNUT) is standing out with significant buying pressure.
PNUT was trading at $1.67 at press time, showing astonishing gains of over 240% in the past 24 hours. On the weekly chart, the token has rallied over 1,200%.
The Solana (SOL)-based meme coin currently has a market capitalization of $1.69 billion, translating to an inflow of $1.25 billion in the last 24 hours. This momentum has seen PNUT break into the top 100 cryptocurrencies by market cap, ranking in the 58th spot.
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PNUT one-day price chart. Source: CoinMarketCap
Drivers of PNUT popularity
The surge in the price can be primarily attributed to its listing on Binance and Bybit. Given the size of these exchanges, the listing increased their visibility and liquidity, attracting investors partly driven by the fear of missing out.
The meme coin’s growth is notable, considering it was launched less than two weeks ago. Since then, investors who made strategic bets have seen significant returns.
$PNUT launched 13 days ago and now has a market cap of $1.7B, making it the 56th largest crypto. 🤯
IN JUST 13 DAYS. pic.twitter.com/a27KNEMnwc
— Satoshi Club (@esatoshiclub) November 13, 2024
PNUT has generally surged in tandem with the broader market, which is rising on the Bitcoin (BTC) bull run inspired by the optimism surrounding Donald Trump’s re-election.
Additionally, PNUT’s popularity has been boosted by its unusual origin story, centered around Peanut the Squirrel, a pet and social media star.
Peanut gained popularity after being confiscated by New York’s Department of Environmental Conservation (NYSDEC), which sparked outrage across social media. The story caught the attention of Tesla CEO Elon Musk, a prominent figure in the meme coin world.
The government should not be allowed to barge into your house and kill your pet! That’s messed up.
Even if it is illegal to have a pet squirrel (which it shouldn’t be), why kill PNut instead of simply releasing him into the forest!? https://t.co/2m9Gi5QpUT
— Elon Musk (@elonmusk) November 3, 2024
What next for PNUT?
Following PNUT price action, a crypto analyst with the pseudonym CryptoBull_360 noted in an X post that the token is showing signs of a promising technical setup on lower timeframes.
The cryptocurrency has formed a rising wedge pattern often associated with potential breakouts. A strong move beyond the current resistance zone with solid volume backing this trend could ignite a short-term rally, possibly in the 30-40% range.
PNUT price analysis chart. Source: TradingView
At the current valuation, PNUT has a bullish outlook, with the main price target standing at $2. Market sentiment is strong, as indicated by an ‘Extreme Greed’ index of 84.
However, the 14-day relative strength index (RSI) is at 70.83, suggesting that PNUT may be overbought and at risk of a pullback. While the asset has shown positive performance, traders should remain cautious of potential volatility despite the optimistic forecast.
Featured image via Shutterstock